If you commit fraud to secure or increase benefits a penalty of 50 percent of the amount of benefits obtained by fraud is applied for the first offense and a 100 percent penalty is applied for each subsequent offense. The department shall also impose four weeks of administrative penalty for each week that an individual willfully or fraudulently misrepresents a fact to secure or increase benefits. There is no expiration of this penalty and benefits will be denied during this penalty period.

What kind of payment is accepted for my Unemployment Insurance (UI) overpayment?

We accept credit/debit cards, money orders and checks. You can pay by credit/debit card by contacting us at 605.626.7649. Or you may download the Credit Card Authorization form (in Adobe .pdf format*), complete it and return it to us at the address above. Money orders and checks can be sent to the address above.

If I disagree with the amount I was held overpaid, how do I appeal or request a waiver?

The overpayment notice you receive by mail indicates your waiver and appeal rights. Please read the notice carefully and note the date it was mailed. Waivers and appeals can be accepted if made within 15 days after the notice was mailed. You must appeal in writing by mailing your appeal letter to the following address. Your appeal must include your file number and the reason for the appeal.

If I had income tax withheld from my UI benefits and now I am overpaid, do I have to pay back the amount deducted for income tax as well as the UI benefit amount?

Yes. The income tax withholding was sent to the Internal Revenue Service. Although you must pay back to us all of the unemployment insurance benefits you received, you can get credit for the overpaid income tax on your federal income tax return. Remember to tell your tax professional that you paid an overpayment during the tax year.

If you are overpaid and you were at fault in the overpayment, interest will begin accumulating immediately at 12 percent simple interest per year. If you are not at fault, interest will begin accumulating after six months at 12 percent simple interest per year.

No, we are not allowed to use money set aside for unemployment insurance benefits to pay back the interest accrued for an overpayment. By federal law, money for unemployment insurance benefits can be used to pay actual benefits only including the principal for an overpayment.

No. The overpayment principal will not be written off due to your bankruptcy. The principal can be recouped with future benefits on fraud overpayments. However, the accrued interest will be written off.

By law, you are required to keep a record of your contacts as instructed by UI Benefits. You are also required to produce that record on request. For more information, visit the UI Benefits portion of this website.

Yes. Interest will accrue during an appeal process. You will not receive monthly bills during the appeal process unless you owe money for a previous overpayment. Then you will receive monthly bills for that overpayment.

If I am filing for benefits, can my overpayment be paid back with current benefits if an appeal is in process?

Yes. Your overpayment can be paid with current benefits provided you file weekly certifications and are otherwise eligible. If you win the appeal, you will be issued a payment to cover whatever benefits were used to pay the overpayment.